Mercedes-Benz to Shut Long Beach R&D Campus and Shift Operations to Atlanta

Mercedes-Benz Research & Development North America announced on May 7 that it will permanently close its Long Beach research and design campus in California. The decision marks a significant restructuring move for the company’s U.S. engineering and technology operations as it shifts focus toward a new technology hub in the southeastern United States. The Long Beach facility, which spans approximately 32,100 square feet, has supported multiple advanced engineering activities including powertrain development, autonomous driving systems and in-car software engineering.

The company stated that the shutdown process will begin this summer and continue in phases until the site is permanently closed by the end of 2026. According to HR executive Evonne Mitchell, workforce adjustments are expected to begin on July 6 and will involve a combination of layoffs and employee relocations. The facility currently employs around 186 people, with at least 72 positions expected to be either transferred to other Mercedes-Benz facilities or eliminated during the restructuring process.

Engineering Roles Impacted by Campus Closure

Many of the affected positions are tied to technical and engineering operations, particularly in areas related to advanced vehicle technologies. Employees working on powertrain systems, autonomous technologies and in-car software platforms are among those expected to be impacted. The move reflects broader industry shifts where automotive manufacturers are consolidating engineering functions into centralized innovation hubs designed to support faster software and mobility technology development.

The Long Beach campus has been part of Mercedes-Benz’s North American research activities for years, supporting technology development initiatives aligned with the company’s global mobility and digitalization strategies. The closure indicates a realignment of resources as the automaker continues to optimize operational structures and invest in new-generation engineering centers capable of supporting future mobility requirements.

Mercedes-Benz Expands Technology Presence in Georgia

Mercedes-Benz also confirmed plans to open its new Atlanta Technology Center this summer near its U.S. headquarters in Sandy Springs, Georgia. The new facility is expected to support the company’s expanding software, connectivity and advanced vehicle technology operations in North America. The transition aligns with the company’s effort to centralize technology development activities while maintaining access to engineering talent and digital innovation ecosystems.

The new Atlanta center is anticipated to become an important base for future vehicle software programs and mobility technologies. As automakers continue increasing investments in software-defined vehicles and intelligent driving systems, centralized development facilities are becoming increasingly important for accelerating product innovation and improving collaboration across technical teams.

Frequently Asked Questions

Why is Mercedes-Benz closing its Long Beach R&D campus?
Mercedes-Benz is closing the Long Beach research and development campus as part of a broader operational restructuring and technology realignment strategy in the United States. The company plans to consolidate engineering and innovation activities into newer facilities, including its upcoming Atlanta Technology Center in Georgia. The closure will occur in phases through the end of 2026 and will impact engineering, autonomous systems and software development teams. Mercedes-Benz stated that some employees will be relocated while others may face layoffs as operations are shifted to other locations.

How many employees will be affected by the Mercedes-Benz campus closure?
At least 72 positions are expected to be affected by the closure of the Mercedes-Benz Long Beach campus. The facility currently employs around 186 workers, including engineering and technical staff involved in powertrain development, autonomous systems and in-car software programs. According to company statements, some employees may be transferred to other Mercedes-Benz facilities while others could lose their roles during the phased shutdown process. The restructuring activities are scheduled to begin on July 6 and continue until the site permanently closes by the end of 2026.